Valley Companys adjusted trial balance on August 31, 2016, its fiscal year-end, follows. Debit Credit Merchandise inventory
Question:
Valley Company’s adjusted trial balance on August 31, 2016, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 38,000 Other (noninventory) assets 152,000 Total liabilities $ 43,890 Common stock 51,152 Retained earnings 74,433 Dividends 8,000 Sales 259,920 Sales discounts 3,977 Sales returns and allowances 17,155 Cost of goods sold 100,577 Sales salaries expense 35,609 Rent expense—Selling space 12,216 Store supplies expense 3,119 Advertising expense 22,093 Office salaries expense 32,490 Rent expense—Office space 3,119 Office supplies expense 1,040 Totals $ 429,395 $ 429,395
On August 31, 2015, merchandise inventory was $30,666. Supplementary records of merchandising activities for the year ended August 31, 2016, reveal the following itemized costs.
Invoice cost of merchandise purchases | $ | 111,720 |
Purchase discounts received | 2,346 | |
Purchase returns and allowances | 5,363 | |
Costs of transportation-in | 3,900 | |
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3. Prepare a multiple-step income statement that begins with net sales and includes separate categories for: cost of goods sold, selling expenses, and general and administrative expenses.
Financial Accounting Information for Decisions
ISBN: 978-1259533006
8th edition
Authors: John J. Wild